The best personal loan rates in the UK

Looking for the best personal loan rate available in the UK? The truth is that the “best” loan will entirely depend on your personal circumstances, your credit history and how much you want to borrow.

Best for bad credit

Finder Award

Abound Personal Loan (formerly Fintern)

Check eligibility

25.8% APR representative (Fixed)

Quick decisions
Overpay with no fee
Uses Open-Banking to assess affordability

Best for guarantor loans

Guarantor My Loan

Check eligibility

49.9% APR representative (Fixed)

Fixed loan terms
Same day funds
Flexibility over early repayment

Best for fast funding

Tesco Bank Clubcard Personal Loan

Read review

6.1% APR representative (Fixed)

Same-day funds
Competitive rates
Take a payment holiday

The top personal loan rates for 2024

What’s the best overall loan rate in the UK at the moment?

Personal loan rates have shifted upwards in recent weeks, with the most competitive loan rate now available from Tesco Bank at 6.1% APR. You can borrow between £7,500 to £25,000 over 1 to 5 years and to qualify for this interest rate, you’ll need to have a Tesco Clubcard. You’ll also need a good credit rating, otherwise you’ll likely pay a higher interest rate.

Below, we’ve curated a list of the best loans by credit score and size of the loan so you’ll get a better idea of which lenders are more suitable for you. We’ve also added a wealth of tips and advice to ensure that you’re able to confidently decide which is the best personal loan for you.

Already know what type of loan you need? Start comparing providers.

What is the average personal loan rate in the UK?

The average interest rate on a £5,000 personal loan is 10.55% as of November 2024 and the average interest rate on a £10,000 person loan is 6.63%. In July 2024, the average interest rate for a £5,000 loan reached 12.09%, the highest it had been since at least May 2013.

Our expert says: Credit and loans expert Michelle Stevens explains how to pick the best personal loan

"When choosing which personal loan to apply for, I would first consider what you need the loan for, how quickly you need the funds, and how much you can realistically afford to borrow and repay.

It’s vital that you can meet the loan repayments each month. So think about the amount you want to borrow, how long you want to borrow it for and what the loan interest rate is. That will then determine what your loan repayment will be each month – using a personal loans calculator can help you work this out.

When comparing loans, as well as looking at the interest rate and monthly repayment cost, also check if there are any fees for arranging the loan or paying it back early.

Some lenders will also now give you an indication of how likely you are to be approved for a particular loan by using an eligibility checker. This can let you check what type of loan you might be eligible for before applying and without impacting your credit score."

Michelle Stevens

Deputy editor

Best personal loan for good credit

While the best personal loans will depend on how much you want to borrow, in general you’ll find that the better your credit score and history, the better the interest rate you’ll be offered. For personal loans over £7,500, you could be offered a rate as low as 5% if you have a top-notch credit score. If you’re not sure what your credit score looks like, you can check yours for free with Finder).

Novuna Personal Loan

Customer rating

★★★★★

Check eligibility Read review

6.9%

APR representative

£35,000

Max loan

48-49 years

Loan terms

• Overview
• Pros/cons
• Details

Novuna Personal Finance can provide new and existing customers with loans of between £1,000 and £35,000, starring at a competitive rate of 6.9% APR representative.

• Competitive interest rates
• Fixed-rate monthly payments
• Choose the monthly repayment date
• Instant credit decision
• Receive money within 2 working days

• Pre-approved loans unavailable
• Good credit history only

Age	21 or over
Minimum income	£10000.00 Per Annum
Credit ratings	Good
Soft credit search	No
Joint applications	No
Instant decision	Yes
Repayment frequency	Monthly

Representative example: Borrow £10,000.00 over 3 years at a rate of 6.9% p.a. (fixed). Representative APR 6.9% and total payable £11,064.60 in monthly repayments of £307.35.

Best personal loan for bad credit

Securing approval for a personal loan may be more challenging if you have a poor credit score or have limited credit history. While certain lenders may still offer loans to individuals with poor credit, it is important to note that the interest rates are likely to be substantially higher compared to those offered to applicants with good credit. Additionally, borrowing limits might be lower, and there could be additional fees involved in such circumstances.

If you’re concerned about the amount of interest you will have to pay, you could consider a guarantor loan.

However, be aware that applying for a secured loan requires you to secure your loan against an asset, such as your home. Secured loans should be considered with care as if you fail to keep up with your repayments, your home could be repossessed.

Abound Personal Loan (formerly Fintern)

Check eligibility Read review

25.8%

APR representative

£10,000

Max loan

1-3 years

Loan terms

• Overview
• Pros/cons
• Details

Unlike most lenders, Abound (formerly known as Fintern loans) offers affordable unsecured loans to those with bad and good credit. Abound uses AI and Open Banking to determine how much you can afford to borrow.

• Quick funding, if approved
• Flexible repayments
• Does not use your credit score to determine your eligibility

• You'll need to connect to Open Banking
• Additional fees may apply if you change your repayment plan

Credit ratings	Fair
Soft credit search	No
Joint applications	No
Instant decision	No
Repayment frequency	Monthly

Representative example: £2,000 loan repayable over 36 months. 36 monthly payments of £77.60. Rate of interest 20.2% p.a. (fixed). Representative 25.8% APR. Total amount repayable £2,793.60.

Best fast personal loan

These days, many lenders will offer instant decisions or pre-approval on personal loans, but some will still take a couple of days to send you the money. However, in some cases, loan funds can be transferred the same day, with some only taking a couple of hours after being approved.

Tesco Bank Clubcard Personal Loan

Customer rating

★★★★★

Read review

6.1%

APR representative

£25,000

Max loan

1-10 years

Loan terms

• Overview
• Pros/cons
• Details

The Tesco Bank Clubcard Personal Loan can provide same-day funds to approved applicants, with loan amounts ranging from £3,000 to £25,000.

• Same-day funds
• Competitive rates
• Take a payment holiday

• You need a Clubcard to get the best rates
• Doesn't offer bad credit loans
• Interest charge will be applied if you want to pay loan off early

Age	18 or over
Credit ratings	Good
Soft credit search	No
Joint applications	Yes
Instant decision	Yes
Repayment frequency	Monthly

Representative example: Borrow £10,000.00 over 3 years at a rate of 6.1% p.a. (fixed). Representative APR 6.1% and total payable £10,941.12 in monthly repayments of £303.92.

Best guarantor loan

If your credit history is limited or poor, opting for a guarantor loan can enhance your likelihood of approval. This loan type requires enlisting a close friend or family member as a guarantor, responsible for repaying the loan in case you are unable to do so. This reduces the risk for the lender, which increases your chance of approval, and may also help you get better loan terms and rates.

Guarantor My Loan

Check eligibility Read review

49.9%

APR representative

£10,000

Max loan

1-5 years

Loan terms

• Overview
• Pros/cons
• Details

Guarantor My Loan is a peer-to-peer lender specialising in guarantor loans, and aims to give options to those let down by traditional lenders. It can offer competitive rates, but also charges a service fee that increases the more you borrow.

• No upfront fees
• Not only limited to mortgage holders

• Rates are high compared to alternative
• High eligibility requirements
• Fees for paying loan off early

Age	18 or over
Credit ratings	Poor
Repayment frequency	Weekly, Fortnightly

Representative Example: £5,000 over 36 months, representative 49.9% APR fixed. Monthly payment £243.98. The interest is 17% per annum (fixed) and service fee is 23.17% per annum fixed. Interest payable £1,562.19 and service fee payable £2,221.09. Total repayable £8,783.28.

Best homeowner loan

Homeowner loans are secured loans that require you to use the equity you have in your property as collateral against the loan. This means that if you are unable to keep up with your loan repayments, your lender can take possession of your home to recoup its money. Because this reduces the lender’s risk, you’ll generally receive more favourable loan terms than you would with an unsecured loan, including much more competitive rates, loan amounts and terms.

Use our free secured loans calculator.

Norwich Trust Limited Unsecured Homeowner Loan

Read review

31.9%

APR representative

£20,000

Max loan

3-10 years

Loan terms

• Overview
• Pros/cons
• Details

The Norwich Trust Homeowner Loan is designed for applicants who own their own home. Available loan amounts range from £3,000 to £20,000, with loans repayable over 3 to 10 years.

• Available to those with limited credit
• Cashback incentive
• Flexible loan terms

• Large service fee
• Late payment fees

Age	21 to 70
Minimum income	£1300.00 Per Month
Credit ratings	Poor or Fair
Soft credit search	Yes
Joint applications	No
Instant decision	No
Repayment frequency	Monthly

Representative example: Borrow £15,000.00 over 3 years at a rate of 28.01% p.a. (fixed). Representative APR 31.9% and total payable £21,430.80 in monthly repayments of £595.30.

Best personal loan for pensioners/retired people

Most major UK lenders offer personal loans if you’re a pensioner or retired. Some lenders also offer specialised types of loans that are designed for older homeowners. Although options may be a little more limited compared to someone who is earning a regular salary, lenders still recognise that retired people may make good candidates for a loan if they meet other criteria. Our experts have chosen the best personal loan for pensioners/retired people on the market for December 2024.

Santander Personal Loan

Customer rating

★★★★★

Check eligibility Read review

6.2%

APR representative

£25,000

Max loan

1-5 years

Loan terms

• Overview
• Pros/cons
• Details

With low rates and, in most cases, an immediate decision on your application, Santander offers competitive loans for new or exisiting customers aged 21 or over (including those who are retired).

• Same-day funding available
• Low rates
• Fixed monthly payments
• No set-up or arrangement fees
• Overpayments allowed

• Same day funding only available in branch
• You'll need a good credit score to apply

Age	21 or over
Credit ratings	Good
Soft credit search	Yes
Joint applications	Yes
Instant decision	No
Repayment frequency	Monthly

Representative example: Borrow £10,000.00 over 3 years at a rate of 6.2% p.a. (fixed). Representative APR 6.2% and total payable £10,956.60 in monthly repayments of £304.35.

Best personal loan for students/young people

Getting a first time loan as a young person may be more difficult than simply applying and getting approved, however, there are lenders on the market that try and make the borrowing process as simple as possible. Our experts have chosen the best personal loan for students/young people on the market that does just that.

Lendwise

Read review

10%

APR representative

£25,000

Max loan

- years

Loan terms

• Overview
• Pros/cons
• Details

Lendwise offers specialist loans for students and young people with little credit history. The option of deferring repayments until after graduation is unique and could offer students the flexibility they're after. Remember, interest will accrue on disbursed amounts.

• Specialises in student loans
• Repayments changeable
• Overpayments allowed
• Start repaying after you graduate
• Offers financial education

• Rates and terms are unclear until you apply

Soft credit search	Yes
Instant decision	No

Representative APR 10% (fixed).

Features to compare to find the best personal loan

This is a non-exhaustive list of the key features of personal loans that you can use to differentiate lenders in the UK and help you find the right loan for your needs.

• Loan amounts. A good place to start is by finding out whether you’ll be able to borrow the amount you need. Lenders might offer different borrowing amounts so be sure to compare them.
• Eligibility. Check the eligibility criteria carefully. There’s no point applying for a loan if you’re not eligible, and remember that lenders will be able to see each application you’ve made on your credit record.
• Loan terms. A longer loan term will reduce your monthly repayments, potentially making them more affordable. However, this also means you’ll pay more interest overall, so it will be more expensive in the long run. It’s a good idea to use a loan calculator as this will let you select how much you want to borrow and the length of term to see what works out to be the most affordable option for you.
• Fees. Many personal loans don’t charge set-up fees but it’s certainly worth checking to be sure. If a particular lender does charge a fee, the total amount payable (the overall cost of the loan) might become your best benchmark for comparison.
• Total amount payable. This is the big one – if you only compare one factor, this should probably be it. You’ll want to keep the total cost as low as possible, while making sure your monthly repayments are affordable.
• Interest rate. A loan’s Annual Percentage Rate (APR) is the main “hook” that a lender will use to market the loan, but lenders are only required to provide it to 51% of borrowers. Your personal circumstances influence the actual rate you receive, some applicants may receive higher or lower.
• Turnaround time. If you’re in a hurry, you might want to look at the time each lender states it takes to actually draw down your funds (transfer the money to your nominated account). If you get a loan with a bank you’re already a customer at, chances are it’ll be pretty quick, but it almost always pays to shop around.
• Restrictions. Personal loans can be used for almost anything, but there are certain restrictions including gambling, business purposes and using it as a down payment to get a bigger loan. You’ll be asked to enter what you plan to use the loan for when you apply.
• Repayment holidays. Some lenders offer short repayment breaks for financial relief, usually 1 or 2 months, but lenders extend the loan term and increase the overall cost since interest still accumulates.
• Early repayment. If you want to pay off your loan before the end of the term, there might be an early repayment penalty. Under Consumer Credit Regulations 2004, lenders may charge extra interest of up to 58 days, or 28 days if you have less than 12 months left on your loan. Consider this when comparing loan options.

Be aware of early repayment penalties. According to regulations, you may be charged extra interest, up to 58 days, or 28 days if you have less than 12 months left on your loan. Consider this when comparing loan options.

How to choose the best personal loan

1. Find the right loan type for your purposes. There are a range of different products that sit under the umbrella of “loans”, so it’s crucial you think about what you need the loan for and how much you need to borrow.
2. Understand how much you can afford to repay. While knowing how much you need to borrow is the first step to getting a loan, being aware of how much you can afford to borrow is just as important. Make sure you use a loan calculator to check that your monthly repayments will be manageable.
3. Compare loans to establish the features that are important to you. As well as the interest rate, it’s also important to consider factors such as whether there are any fees for setting up your loan or repaying it early, and how fast you will receive your loan funds. Consider which of these factors are the most important to you to help you find the right solution.
4. Find the most affordable loan that meets your needs. Once you’ve determined your needs, search for the most competitive product. Rates matter, but it’s not just about the APR. Aim for the lowest total repayment while maintaining affordable monthly installments.
5. Check your eligibility. Many lenders now allow you to check if you’re likely to be approved for a certain loan by using an eligibility checker. This can give you a better idea of the type of loan you’re eligible for, and won’t affect your credit score.

What to keep in mind when applying

• Don’t apply for, let alone take on, a loan you can’t afford. When borrowing money it is always important to find out what your monthly repayments will be. If you are not confident that you will be able to afford to repay that amount each month, there’s a good chance a lender will have doubts too. Rejected applications don’t show on your credit file, but applications for credit do – too many of these in a short space of time and prospective lenders could be put off. Late repayments come with fees plus additional interest, and are highly likely to damage your credit record too.
• Don’t apply for lots of loans in a short space of time. Take the time to make one sensible application, and if you’re rejected, try to find out why. It’s best to leave at least 3 months, preferably 6, before applying again.
• Read the fine print. When a lender approves your application, they’ll send you a loan offer. This is an opportunity to check that you’re being offered what you applied for (rate, amount, term etc.), and to check you’re happy with the terms of the agreement. OK, it’s not the most exciting document in the world, but read the terms and conditions from start to finish and ensure you are aware of all fees and restrictions.

Our 2024 loans customer satisfaction league table

We asked loans customers to score their satisfaction with the service they had received from their primary platform, and also whether they would recommend the service to a friend. Our independent survey of 750 personal loan users was carried out in December 2023 – full details of our methodology here.

Table ordered by percentage of customers who said they’d recommend the brand to a friend (recommendation score)

Brand	Logo	Overall satisfaction	Customers who’d recommend	Review
Monzo		★★★★★ 4.8/5	97%	Monzo offers loans with fixed monthly repayments, same-day funding and flexible amounts, all through its app. Its customers clearly like the service, giving it 4.8 out of 5 for overall satisfaction.
HSBC		★★★★★ 4.6/5	94%	HSBC offers competitive rates and you can overpay without paying an extra fee. This year, the brand was highly commended, with customers giving it 4.6. out of 5 for satisfaction.
Barclays		★★★★★ 4.6/5	90%	Barclays offers unsecured loans to Barclays customers. It scored 4.6 for overall satisfaction, and an impressive 90% of it customers in our survey would recommend it.
Admiral		★★★★★ 4.4/5	100%	Admiral is known for insurance but also provides unsecured loans. Customers in our survey gave it 4.4 out of 5 for overall satisfaction, but all of them said they’d recommend the brand.
Sainsbury’s Bank		★★★★★ 4.4/5	94%	Sainsbury’s Bank was last year’s loans winner, and this year its customers were also generally positive. It scored 4.4 out of 5, with 94% of customers in the survey saying they’d recommend it.
Zopa		★★★★★ 4.3/5	91%	Zopa was founded in 2004 and offers unsecured loans. Zopa customers in our survey gave it 4.3 out of 5 for overall satisfaction.
Halifax		★★★★★ 4.3/5	90%	Halifax is part of Lloyds Banking Group and offers flexible, fixed rate loans. Halifax loans customers in our survey gave it 4.3 out of 5 for overall satisfaction.
NatWest		★★★★★ 4.3/5	89%	NatWest offers loans to existing current account customers. Its borrowers gave it 4.3 out of 5 for overall satisfaction, in our survey.
Tesco Bank		★★★★★ 4.3/5	86%	Tesco Bank offers unsecured personal loans at some very competitive rates. Its customers in our survey gave the brand 4.3 out of 5 for overall satisfaction.
Lendable		★★★★★ 4.1/5	79%	Lendable considers applications from people who don’t have a great credit score. Lendable customers in our latest survey gave the brand 4.1 out of 5 for overall satisfaction.
118 118 Money		★★★★★ 4.0/5	79%	118 118 Money focuses on small loans over short terms. Customers of its loans gave the brand 4 out of 5 for overall satisfaction in our survey
Santander		★★★★★ 3.8/5	88%	Santander offers new and existing customers unsecured personal loans. The brand scored 3.8 out of 5 from the customers we surveyed.
Finio Loans (formerly Likely Loans)		★★★★★ 3.4/5	83%	Finio Loans specialises in loans for people who don’t have a great credit history. It’s a sister company of Likely Loans (which no longer accepts applications). Finio Loans scored 3.4 out of 5 based on its customers’ feedback in our survey.

How satisfied are borrowers with their personal loan provider?

Customer satisfaction ratings methodology

In December 2023, we ran an independent customer satisfaction survey on personal loan providers. We received answers from 750 personal loan customers who gave us their opinion on their current lender.

We asked respondents how satisfied they are with their personal loan provider (giving a rating of 1 to 5) and whether they would recommend the lender to a friend. We converted the results into star ratings and created a shortlist of the best-performing brands for our awards. Where the star ratings led to a draw, we used the recommendation score (the percentage of customers who said they would recommend the lender to a friend) as a tie-breaker.

Full details of our star ratings for this sector are on the personal loans rating methodology page.

Frequently asked questions

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To make sure you get accurate and helpful information, this guide has been edited by Michelle Stevens as part of our fact-checking process.

Written by

Chris Lilly

Head of publishing

Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more. See full bio

Chris's expertise

Chris has written 602 Finder guides across topics including:

• Loans & credit cards
• Building credit
• Financial health

Co-written by

Rachel Wait

Writer

Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio